The economy

Bahrain's oil production is, by Gulf standards, minimal. The UAE, for instance, produces about 2 million barrels a day while Bahrain's daily production is less than 50,000 barrels. Bahrain does, however, refine a large quantity of Saudi oil which arrives in the country through an undersea pipeline.

Because of its limited oil production, the country has developed a more diversified economy than the other Gulf states.

The largest aluminium smelter in the Middle East is in Bahrain as is a large shipbuilding and repair yard and one of the area's busiest airports.

When Lebanon collapsed in the late 1970s, Bahrain made conscious efforts to attract the formerly Beirut-based banks and bankers to Manama and the efforts paid off. In the late '80s, Bahrain's financial services sector expanded into offshore banking though competition in this field from both Abu Dhabi and Cyprus has been stiff.

In the recent past, the government has also begun a drive to attract tourists to the islands.

Business: Businessmen are expected to wear suits and ties.

Business must be done on a personal introduction basis.

Normal social courtesies should be observed.

Bargaining is common practice: Arabs regard their word as their bond and expect others to do the same. The best time to visit is October to April.

Office hours: Usually 0730-1200 and 1430-1800 Saturday to Thursday.

Government office hours: 0700-1400 Saturday to Thursday.

Commercial information: The following organisation can offer advice:

Bahrain Chamber of Commerce and Industry,
PO Box 248, Manama
Tel: 233 913
Fax: 241 294
Telex: 8691

Business hours:
Banks - 07.30-12.00 Sat-Wed; 07.30-11.00 Thur (closed Fridays)
Offices - 07.00-14.15 Sat-Tue; 07.00-14.00 Wed (Government Offices) (closed Thursdays & Fridays)
Shops - 08.00-12.30 Sat-Thur; 15.30-18.30 Sat-Tue; 15.30-21.00 Wed and Thur (closed Fridays)

Major industry:
Oil, banking, tourism

Business Etiquette:
Bargaining in business is common and oral contracts are often used. Bahrain is a Muslim country. Women should dress conventionally and their clothes should not be revealing. The left hand should not be used for passing and receiving. Many Muslims prefer not to shake the hand of a member of the opposite sex. Shopping
Bahrain is full of dusty souks sitting side by side with air-conditioned malls. Al Manama Central Market (just off As Suwayfiyah Avenue) is one of the liveliest souks in the city. Gold is still sold in the souk and is a popular gift bought by visitors. It is 18 or 22 carat, usually very shiny and not always to European taste. Sadly, the once famous pearl industry is no more but there is talk of a revival.

A good shop for local souvenirs is Ebrahim Abu Ahmed Antiques (Municipality Avenue), near the Oasis Hotel. Here you’ll find Indian jewellery, Russian boxes, Arabic perfumes and dates.